The AI gold rush continues in mid-2026, with companies racing to turn flashy models into actual money-making systems.
Palantir shares have become attractively valued after a sharp decline, despite continued hyper-growth and exceptional profitability. PLTR's AI-driven AIP platform, deep government/military ties, and high net retention (150%) underpin its dominant position and expanding moat. Revenue grew 85% YoY last quarter, with a 57% free cash flow margin; management guides to 72% revenue growth and 59% FCF margin for the year.
Palantir's recent pullback contrasts with accelerating AI adoption, rising profitability and growing commercial momentum, supporting its long-term outlook.
Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) stock is up 9% to $127.31 in midday trading on Wednesday, leading a broad AI-software rally after the company unveiled a sovereign-AI partnership with NVIDIA (NASDAQ:NVDA).
Palantir CEO Alex Karp recently appeared on CNBC to sharpen his critique of frontier AI labs, arguing that enterprises deploying models from OpenAI and Anthropic are “livid” about how much proprietary value flows to model providers.
Karp has a fortune valued at $12.3 billion as of Wednesday, according to Forbes' estimates. Karp cofounded Palantir with billionaire Facebook investor Peter Thiel ($27.4 billion), whom Karp met while at Stanford Law School, and Stephen Cohen ($4.6 billion), and the company went public on the New York Stock Exchange through an unusual direct listing process in 2020.
CEO Alex Karp blasted the token structure used by Anthropic and OpenAI Karp told CNBC that Palantir and Nvidia's open model is the solution for enterprises and governments seeking to own their data.
Palantir posted a 9-point manifesto about "AI sovereignty" on X. The post advised institutions to keep their data in-house and avoid tokenmaxxing.
Cathie Wood over at Ark Invest has been making moves in recent months amid the barrage of volatility slamming the tech sector.
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